U Mobile expects to raise more than RM2.3 billion ($492 million) through the IPO, according to media
Malaysian mobile operator U Mobile is planning to launch a domestic initial public offering (IPO) during the first half of next year, according to a Reuters report.
The report stated that U Mobile expects to raise more than RM2.3 billion ($492 million) through the IPO.
The carrier will file an IPO application to the local regulator later this month, or August, for a deal that would value the company at more than RM9.4 billion, according to sources with knowledge of the matter, with the proceeds of the IPO being chiefly used for the expansion of its mobile network infrastructure.
“Our corporate policy is to not comment on speculation as necessary announcements will be made if there are any concrete developments of that nature,” U Mobile said in a statement.
U Mobile has reportedly been planning to hold an IPO on the local stock exchange since 2014.
Founded in 2006, U Mobile’s stakeholders include Malaysian tycoon Vincent Tan and ST Telemedia, a Singaporean strategic investor wholly owned by the country’s state investor Temasek.
U Mobile and compatriot telecommunications infrastructure company Edotco had recently announced a strategic partnership to accelerate the rollout of a 5G network under the government’s dual-network model.
Under the agreement, Edotco will provide U Mobile with information and access to its tower infrastructure, in addition to resource readiness and expedited site delivery to facilitate U Mobile’s 5G network rollout.
The pair will also jointly develop a process to drive efficiency in identifying the right tower locations and structures based on AI and data driven analytics, faster and more efficient site acquisition and permissions by working with various state agencies.
Additionally, the two companies will discuss commercial arrangements for various infrastructure requirements, including built-to-suit sites, co-locations, site upgrades and indoor coverage.
Last month, U Mobile announced that it has completed the share subscription agreement (SSA) with state-run 5G network Digital Nasional Berhad (DNB) and the country’s Minister of Finance and has signed the shareholders’ agreement for equity stake in DNB.
Rival operators CelcomDigi, Maxis and YTL had also signed similar agreements with DNB. Telekom Malaysia (TM) is the only carrier that has yet to finalize its SSA with DNB, as it still needs to get approval from shareholders in accordance with its governance requirements.
The SSAs stipulate each operator has the option to quit DNB to participate in the planned second 5G network. Maxis, U Mobile, YTL and CelcomDigi have all issued statements indicating great interest in participating in the second 5G network.
In May 2023, Malaysian authorities had said that the country would shift to a dual 5G network once DNB achieved 80% coverage in populated areas, something that occurred in December 2023. As of the end of April, DNB’s 5G network had reached 81.5% of the total populated areas and the adoption rate was 39.2%.
